Justia Vermont Supreme Court Opinion Summaries

Taxpayer Blimar Team Cleaners appealed a superior court decision to uphold the Burlington Board of Tax Appeals' appraisal of its property at 150 Shelburne Road in Burlington at a value of $193,500. Taxpayer contended on appeal that: (1) there was sufficient evidence that the property was not assessed at fair market value to overcome the city appraisal's presumption of validity; and (2) the City of Burlington failed to meet its burden of proof demonstrating the property was assessed at fair market value. Finding no reason to disturb the appraisal or the superior court's decision, the Supreme Court affirmed. View "In re Bilmar Team Cleaners" on Justia Law

Petitioners Garfield and Lucille Goodrum owned 41.54 acres in Reading; all but two acres of land surrounding their home was enrolled in the UVA Program as undeveloped forest land. The Goodrums formed Turtle Hill Farm of Vermont Animal Sanctuary, Inc. (THF), a non-profit corporation whose mission is to rescue, rehabilitate, foster, and adopt out animals, including horses, chickens, rabbits, and guinea pigs. The Goodrums leased four barns and two sheds to THF. THF is funded almost exclusively by donations, which it uses to cover its operating expenses. Most of the donations come from the Goodrums. In 2010, the Goodrums applied to enroll the barns and sheds leased to THF in the UVA Program, which would exempt the buildings from property taxation, but the Department of Taxes Division of Property Valuation and Review (PVR) determined that the buildings were ineligible. The Goodrums appealed to the Director of PVR, who also determined that the buildings were ineligible. The Goodrums then appealed to the superior court, and both parties moved for summary judgment. The court granted PVR's motion, concluding that the buildings are not eligible for enrollment because THF did not operate for gain or profit and is therefore not a farmer under 32 V.S.A. 3752(7). The Goodrums appealed. Finding no reversible error, the Supreme Court affirmed. View "Goodrum v. Vermont Department of Taxes" on Justia Law

Two taxpayers appealed a trial court judgment affirming a decision of the board of abatement of the Town of Pownal, which denied their request for tax abatement. The taxpayers sought abatement of the property taxes on several contiguous properties for the years 2005 through 2011. First, taxpayers argued that the Town's delinquent-tax collector erred in assessing interest and fees on the entirety of an overdue tax bill after refusing to accept a partial payment that taxpayers had proffered in 2011. Second, taxpayers argued that the listers had erroneously and without notice to taxpayers reclassified their property for several years, resulting in improperly inflated tax bills. Third, the taxpayers argued that one sewer-bond payment is applied to each parcel. Fifth, taxpayer Guntlow explained that a house site up to two acres around a house was subject to an exemption in the taxation calculus that was unavailable to taxpayers during the years when their property was misclassified. Upon review, the Supreme Court reversed and remanded the case the trial court with instructions to remand to the Board of Abatement, for a more detailed explanation of the reasons for its denial of taxpayers' request for abatement on the ground that the misclassification of their property over a course of years amounted to a manifest error or mistake, and its request for abatement on the ground that taxation of their .66-acre leach field from 2005 to 2010 as an individual property amounted to manifest error or mistake. In the alternative, the Board could hold a new hearing on those two issues. The Court affirmed in all other respects. View "Guntlow v. Town of Pownal Board of Abatement" on Justia Law

Appellee taxpayer Trevor Jenkins owned and lived on property in the Town of Milton. He failed to pay property taxes for the 2007-2008 and 2008-2009 tax years. The Town mailed him three delinquent tax notices, in June 2008, June 2009, and January 2010, respectively, advising him to take additional steps to avoid a tax sale. The notices were sent to taxpayer by first-class mail. He denied receiving them, and the notices were not returned to the Town. In 2010, a notice of tax sale was sent via registered mail, return receipt requested. Nearly two weeks before the tax sale, the notice sent to taxpayer by registered mail was returned to the Town’s attorney unclaimed after two attempts at delivery. The Town proceeded with the sale and Loren and Kathryn Hogaboom purchased taxpayer’s property at auction. On the day following the tax sale, the Town’s attorney sent a letter by first-class mail informing taxpayer that his property had been sold in a tax sale, he had one year from the date of sale to redeem the property, and interest would accrue on the purchase amount. This letter was not returned to the Town’s attorney. Taxpayer did not redeem the property during the one-year period, and the Town issued a deed to the purchasers. Purchasers filed a complaint for ejectment in 2011, seeking a writ of possession for the property. Taxpayer admitted his failure to pay taxes but denied ever having received notice of the tax sale. He filed a counterclaim against purchasers and a third-party complaint against the Town, seeking a declaratory judgment setting aside the tax sale as void. Purchasers and the Town both filed motions for summary judgment, contending that notice to taxpayer satisfied the requirements of due process. The Superior Court concluded taxpayer's due process rights were violated because of the undelivered notices. Finding no reversible error, the Supreme Court affirmed. View "Hogaboom v. Jenkins v. Town of Milton" on Justia Law

This property tax appeal centered on the valuation of five electrical substations, seven transmission lines, a fiber-optic line, land, and utility easements located within the Town of Vernon. Taxpayer Vermont Transco LLC challenged a decision of the state appraiser fixing the 2011 listed value of taxpayer’s utility property in the Town at $92 million. Taxpayer argued: (1) the state appraiser should have used an alternative nonlinear depreciation schedule (the “Iowa Curve” method) because that method was previously approved by the Supreme Court in reviewing the method of property tax appraisal; (2) the state appraiser’s decision on fair market value was not supported by a sufficient analysis of the “core factual issues, including whether fair market value is best estimated by the economic or physical life of the assets, and what those lives are;” (3) the state appraiser’s decision to follow the Town’s appraiser in not depreciating assets during the first year of service was wrong; and (4) the state appraiser’s decision to include an appraised value for the utility easements was also wrong. Upon review, the Supreme Court reversed and remanded the case for further findings regarding the lifespan of the property to be used in calculating depreciation. View "Vermont Transco, LLC v. Town of Vernon" on Justia Law

Taxpayer Ugo Quazzo appealed a superior court decision to uphold a determination by the Commissioner of Taxes that he failed to prove a change of domicile for purposes of obtaining an income-sensitive homestead property tax adjustment on his Vermont residence for the years 2007 through 2009. He argued that the Commissioner erred in treating this case as one involving a change of domicile, rather than maintenance of domicile, so that taxpayer had the burden of proving by clear and convincing evidence that he had changed domicile to Vermont, even though he had declared (and the Department of Taxes did not challenge) his Vermont domicile years earlier. He also argued that the Commissioner’s findings are insufficient to support her conclusions. Finding no reversible error, the Supreme Court affirmed. View "Quazzo v. Department of Taxes" on Justia Law

The Town of Monkton brought a consolidated appeal from decisions of the state appraiser in three property tax cases challenging the Town's 2011 assessment. At issue was the manner in which the Town assessed land that had the potential for subdivision and further development. The state appraiser ruled that the Town had treated taxpayers inequitably by adding additional "home-site values" to undeveloped parcels that are subject to a permitted and recorded subdivision plan. The Town did not add this additional element of appraised value to other undeveloped parcels that may be eligible for subdivision without a permit due to their history or configuration. The Town argued it acted fairly in applying different valuation methods to properties with different characteristics. From the Town’s perspective, the appraised value of a parcel of land with a permit for more than one home should reflect additional development value, and land that could be subdivided but is not the subject of a permit is not similarly situated for purposes of tax appraisal. After review, the Supreme Court agreed with the Town's arguments and reversed the state appraiser. View "Lathrop v. Town of Monkton" on Justia Law

Appellant-taxpayer Elaine Hoiska appealed the Vermont State Appraiser’s valuation of her property in the Town of East Montpelier. She argued that the appraisal incorrectly treated her property as comprising two contiguous lots under common ownership, and accordingly assigns a higher value to the property than if it were a single developable lot. More specifically, appellant took issue with the appraiser’s legal conclusion that she legally subdivided the land in 1978 by procuring a survey, not filed in the land records, that includes a line purportedly dividing the lot into two parcels. Upon review, the Supreme Court agreed that the state appraiser’s findings did not support the legal conclusion that appellant effectively subdivided her property in 1978, and reversed. View "Hoiska v. Town of East Montpelier" on Justia Law

Taxpayer Brownington Center Church of Brownington, Vermont (now known as New Hope Bible Church and Ministries, Inc.) (the Church)), appealed a Superior Court determination that certain land and buildings owned by the Church were not exempt from real estate taxes for the tax year commencing April 1, 2009 under 32 V.S.A. 3832(2). The parties did not dispute that the property was dedicated for pious use and that it is owned and operated by the Church as a nonprofit organization. The issue was whether the property was excluded from the pious-use exemption of section 3802(4) by the language in section 3832(2). The Church argued that the property qualified for exemption, primarily because everything that occurred on the property facilitated its religious ministry and that “worship and service of the Believer in Christ” takes place everywhere on the premises. Under this belief, the Church maintains that the steel equipment building, the cabins, kitchen and the tent, are all church edifices. It defines “church edifice” to be a “structure or facility that is used exclusively or primarily to propagate a religious message to persons who receive that message for a worshipful purpose.” It contended that an overnight summer camp for religious purposes transformed the entire property into a place of worship and education. The Supreme Court disagreed and affirmed the Superior Court. View "Brownington Center Church v. Town of Irasburg" on Justia Law

The issue on appeal to the Supreme Court centered on the question of how non-rental residential properties subject to housing-subsidy covenants should be valued for property-tax purposes. Taxpayers in two cases consolidated for the purposes of this opinion contended that the governing statute mandates an automatic reduction in valuation for properties subject to these covenants or, (what is effectively) equivalent, a mandatory tax exemption on a portion of the property's value. The towns in which these properties are located contended instead that the applicable statute requires that municipal listers give individualized consideration to the effect these covenants may have on the fair market value of a given property when they determine the appropriate assessed value for the allocation of property taxes. The Vermont League of Cities and Towns and the Vermont Assessors and Listers Association joined the towns as amici curiae. The Supreme Court agreed with the towns that the existence of a housing-subsidy covenant was but one of many factors listers and assessors must take under advisement in ascertaining a property's fair market value.  View "Franks v. Town of Essex" on Justia Law